* A CV is not created under stress, it's a considered document which will almost certainly have been drafted and reviewed. Lies on a CV are not spur of the moment things, they're thought through.
* Yes we all lie but there are different levels of lie. Lying in a way which might involve someone making a decision to give you a job (and thousands of dollars) that they might not otherwise give you is a significant act of dishonesty.
* An interview is a time limited thing and because of that I have limited information on which to base a decision. If one of the things I discover during that interview is that you have perpetrated a significant, considered act of dishonesty, it's almost certain you're not going to have done anything to allow you retrieve the situation.
I'm not saying the person is a habitual liar, I'm saying I don't know but I'm not going to take the risk given what I've seen.
Probably worth saying that I'm talking about lies here, not exaggerations (which I accept as part of the game).