Is there a word that describes a person who constantly exaggerates? Exaggerating both facts and their emotions?
Edit: the word should have a negative connotation, as if you are criticizing someone for exaggerating too much.
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How about braggart? ~ " A vain bragger, one who brags much."
You might try Munchausen, after the fictional (and fiction-creating) German Baron. Be careful, though; the word has been taken up by the medical profession to describe somebody who constantly fantasises or lives in a dream world, which is stronger than the original meaning, and probably stronger than you're looking for.
What do you think about Coproglot ?
You could call him a "Commander McBragg"
McBragg is a a cartoon character that tells stories in his English club about his many exploits that are hard to believe. Here are a examples and a link to a Wikepedia description: