Fiction and Hyperreality

If we take the notion that the real world has retreated and dissolved behind a series of simulations, signs and models that the real has become the hyperreal then we are left with a telling dilemma. Baudrillard posits that simulation is impossible because reality cannot identify what is simulation and what is real (thereby removing reality itself), however, what happens to fiction in this situation? If we take fiction to be representative of a series of events (is normal fiction a simulation or a counterfeit in Baudrillard's terms?) then it's possible that we might denote it as a simulation (autobiography certainly is) whereas fantasy is more likely termed counterfeit. If simulation is impossible in a hyperreal world then this must mean that fiction (as simulation) is also impossible and what is produced is neither fictitious or real but hyperreal. But does the work I am producing behave in this way? For me, the "art" is not located within the representation of the process, the art is the process, the representation (story, video etc) is simply the documentation. How can a "real life" act as a simulation? I am not a simulation of myself, my work simulates but I do not.

I do not have the answer to this yet. It's time to sleep and dream of swine flu.