This is kind of wordy, but good.

http://www.buzzle.com/articles/compu...-symptoms.html

It makes me think that an 'intervention' sort of thing might work, as the liar would be aware that EVERYONE is on to this. As the article indicates, people can't even stop it after a while, and do need professional help to break the cycle.

This deals more with what the OP mentioned:

http://www.askmehelpdesk.com/other-f...iar-55878.html


The only immediate thing I can think of is paying attention to her when she is speaking about a regular thing, and turning away and ignoring her when she starts the lying. 'tell the truth, you get attention - lie, and you're on your own.'

That's a real toughie. Prayers for her!

ETA: interesting... http://www.dailystrength.org/groups/liars-anonymous

Chronic lying can also be part of Borderline Personality Disorder, which I understand is treatable.