Lying at work is an unfortunate common phenomenon, and that's no lie. It starts with the large number of resumes that contain blatantly false assertions, claims, and achievements, and only gets worse from there.
Nonetheless, your first step is to be absolutely certain that your associate was lying. You are the best one to know if there is even a slight possibility that her recollection is correct. If there is no question that she is operating in the world of fiction, the best step is to focus on the future. Going back to her at this point is only going to lead to an irresolvable argument.
As you look down the road, put your messages to her in writing. It is unfortunate that you have to do this, but if you can show her an email or note that clearly stipulates what you said, the issue ends immediately. Besides, most experts in communication agree that redundancy is important in making sure that one's ideas are being accurately heard.
On a broader basis, if you have a co-worker who strays from the truth, you should stray away from her whenever possible.
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