Your confusion is understandable as I don't think I have ever heard anyone on TV or radio say 'lie' or 'lying' when one or the other is the correct word to use. Almost everybody says 'lay' or 'laying'. Bob Dylan has a lot to answer for with "Lay, lady, lay" (It should be "Lie, lady, lie"). While it is true that he could be asking his girlfriend to tell him untruths, the next line makes it clear that he wants her to lie on that big brass bed. Then there is that song by Snow Patrol with the chorus "If I lay here/ If I just lay here/ Would you lie with me and just forget the world?" Two wrong and one right. My Chambers Dictionary gives one of the meanings of 'lay' as 'lie' (archaic, nautical and ILLITERATE) (my caps).