How do i handle my roommate?

So my roommate is like a brother to me and the whole reason I live there is because we also do web comedy/skit comedy together. We always have and when he got a nice hookup on his place, he had an extra room to build an editing studio and sound equipment. Naturally, I said hells yeah. Known the guy for a long time but living with him has been a different story and I am seeing a different side of him. For starters, he likes to lie a little bit about things that people say or do. He'll tell me someone wants to work with us on a project and then i'll talk to that person and they'll say Uhhhhh not really but maybe in the future. Also found out that he has a lot of financial problems and he of course has covered that up and thats understandable. He also has family issue apparently. His father and sister have come over several times looking for him and i'm there studying usually so i have to be the mediator. He also is an attention whore. haha. What i mean is he really demands attention from people and loves talking about himself. I mean two seconds after i walk in the door he's telling me all the things that have happened to him that day. he's a friend so I listen but again....its annoying. My question is...how do carry myself around him? Do i just act like i am listening? It just gets old. Its like having a kid around. He's a good friend but i think if i dont handle myself well, the friendship could be damaged. I gotta decided by december if i'm doing another year with him and i'm leaning towards no. Thoughts?