My friend lies... can you help me decipher the truth?

She just REALLY wants attention. My best friend used to be JUST like that. At first I put up with it and when she was telling lies I'd just say "uh huh... uh huh..." but eventually I got tired of it, grew some guts, and told her "Kay look. Its OBVIOUS that you're lying. And don't even try to say you aren't, because you're horrible at it. You have no facts behind your lies. I'm sick and tired of you being a drama queen, attention seeking, impulsive liar. If you want to keep my friendship, you better tell the truth now or watch me walk." Of course, she told the truth and hasn't lied since, and it's been a year. I understand how hard it could be to say something like that to her face, but you really have to do that. It's either say that or say "Look, you've been lying to me since day one. You can go ahead and say you haven't, but its obvious, considering the fact that your lies have no facts to back them up. And I can't take it anymore. I can't be friends with someone that dishonest." Communication is key.