If someone's lying is that excessive to the point that it really bothers me, I stop associating with that person. I mean, I don't actually say, "You lie like a rug--so screw you! Don't talk to me!" You know what I mean. That's how I "deal" with people like that...it's really tempting to play Mother Teresa and try to overlook things and change them, but it's just more trouble than it's worth. Fortunately, I've only run into a person like this twice in my life, so to me that says good things about most peoples' honesty.