A Chronic Lying Co-Worker

I work with someone who needs help. She is a chronic liar. When and if she shows up for work, she is always late. She will put 80+ hours worked on her time card...lucky if she put in 5 total hours in two weeks. Slams the boss constantly behind her back, even though this same boss looks past all of her terrible habits and has bent over backwards for her. I can't believe one thing that she says, probably because she can't look anyone in the eyes when she talks. She is loud & very unprofessional. She can b.s. with the best, but NEVER comes through with any projects she says she will do. Always borrowing money from boss/co-workers. Doesn't always pay back. I try to ignore it, but it's been two years. What should I do?

(Posted by Jag)