Here's a link for you. Read the reader comments at the bottom of the page - very helpful.
http://www.amazon.com/Parenting-Love-Logic-Updated-Expanded/dp/1576839540/ref=sr_1_1?ie=UTF8&s=books&qid=1260322277&sr=8-1
Tega, it sounds like she's lying to get out of doing stuff, or to get out of trouble. Is she also lying to make herself appear more exciting? Those are two different things.
If she's only lying to escape stuff, and not making up grandiose tales to make herself seem more likeable, she just probably needs more room to make decisions.
Make statements like you can wash your hair tonight or tomorrow before school, it's your choice. Don't get into a questioning argument - did you wash your hair, you're lying, why are yuou lying, etc. Just you need to wash your hair either tonight or tomorrow before school, whichever works for you.
Have you read Love and Logic? I think this book will help you tremendously in dealing with verbal battles and cutting out the confrontations.