Post date: Jan 23, 2010 2:31:47 PM
....is the spontaneous narrative report of events that never happened. It consists usually of the creation of false memories, perceptions, or beliefs about the self or the environment as a result of neurological or psychological dysfunction.
http://en.wikipedia.org/wiki/Confabulation
(It's interesting that we sometimes hear the word "disconfabulated" in society, but it's not a real word! They must mean "discombobulated".)