Lay. Lie. Lye. Bold faced lie, or liar? Lying, or laying.

Do I lie in bed, to sleep? Or am I laying in bed? If I am laying, do we expect an egg? Which is the truth, and which is horizontal posture?

What about lay in wait? Do predators lie or lay in wait? I know to lie about my weight, but which is it if I am stalking a carrot cake?