A bit of a question I've been pondering. Does the Element of Honesty extend to AJ's Chars? As in can her Characters tell lies and the like?

well depends on how you put together the story now applejack herself might not be able to lie her way out of a paper bag but a person can just have something like "Ok, you used your bluff skill to try to get out of the hairy situation and ...... depending on roll the person making the story can just have the character say the right words or if you wanna have some rp fun then yes i see applejack being honest to a fault then again you can also take in to account she doesnt have to be to convincing off the paper so long as it sounds decent in game so mainly depends on how you wanna put the whole thing together anyway hope this helps and may your mind never dull

I think that if AJ created a char that would lie in a given situation, her sense of honesty would compel her to have her character lie. AJ is being completely honest when she says "My character would lie in this situation"