i first and foremost want to apologize for my response; especially if it is accepted. but you say that you are honest and trying to deal with the chronic lying because it is driving you insane. you are asking what you should do. i would start by asking why did you take on this 8 year old when you have such an issue with lying. this child maybe living with lies of his own because someone had to take him on. i know that i am being circular here but this child does need clarity and if you feel that is an issue i think that he does not need anymore confusing elements in his life. to say that it is driving you insane denotes to me a rather melodramatic unit . it upsets you i am sure and feeling that you are an honest family kind of says to me that you really worry about what everyone in the unit is saying thus i think your first step might be to lighten up. lying is usually equal to fear; the fear that if a person tells the truth they either might lose something they do not want to lose or endure something they do not want to endure either way if he is lying it might be because he is worried about acceptance and love and being pushed onto someone else. the pressure of being perfect maybe too much for him which will create more serious issues on down the road. good luck

I understand how you feel. I have a 7 yr old FAS grandmachild and the constant lying and stealing drove me crazy too as well as the other problem behaviors. Then I read more about the syndrome and learned that the alcohol drunk by pregnant mom agctually caused brain damage in the fetus. This damage can't be fixed. As a result, the child does things without even knowing that he does them or why he does them. Don't accept the blame folks may throw at you or the child. Instead, accept his limitations with patience and love. And reward and encourage the things he manages to do right.
When others critisise, gently remind them that this child, through no fault of his own, has many more struggles and difficulties than others.
God bless you for opening your heart to this wounded but promising little boy.
PS. And do read up on FAS/FAD. It helps so much to know exactly what enemy you're dealing with and how to help your child the most.

I found that reading Trying Differently Rather Than Harder by Diane Malbin provided great insight.