Yeah that is pretty much what I mean. Outright lying on a resume is really tough but stretching the truth a bit about your personal skills is something that I think a lot of us do, maybe without even realizing it.
I wonder where the line between stretching the truth and lying is, though? Sure, it's a bit of a leap between that and outright saying you have qualifications or experience you don't, but the whole process is selling yourself to an employer; telling them what you think they want to hear, not necessarily what you think/feel about your personal skills.
I guess it's down to interpretation, but it isn't really honest, and if it isn't honest...well, I guess that's partly what the interview stage is trying to gauge, haha. Maybe it's just because I'm excessively pessimistic that I think of these things =P