Bust them out for every lie. Talk to her about how everytime she lies your trust in her goes down. Tell her that if she keeps lying and something really bad happens, NO ONE is going to believe her. When she lies, have her write an apology letter to whomever she lied to. Make her write dictionary pages every time she lies. She will end up with an awesome vocabulary which will help her when she takes her SAT's for college. Pick pages that have to do with lies, trust, etc. You can also have her write Bible passages too. That one worked for students when I was in Catholic school, some of those passages and dictionary pages are long.
at 8:57 PM on Feb. 20, 2009