Phantom pregnancies are normal in bitches - they all have them, as in they're all hormonally 'pregnant' as far as their bodies are concerned (which is why we can't do hormone based tests on bitches to see if they're pregnant, as they'd all come back positive post season).
Whats not so normal is the phantom litter - where they think theres a litter of puppies, make nests, collect soft toys, remote controls, anything small and oblongish, things with rubbery buttons on seem favourite, lactate...
In the wild canid, this is a helpful thing, bitches within a social group will feel maternal towards any puppies and may help raise puppies, may even help feeding them.
In your home... not so helpful.
Reduce her food and up her exercise so her body thinks she can't support puppies/milk production (you don't have to go crazy over this and she needn't feel hungry, just offer foods that have a high bulk/low cal. ratio, like chunks of raw veg/fruit).
Spay her 3 months from the time you noticed she was in season, and she should be fine...
If you're concerned about spay, speak to your vet, find out which kind of spay they do, many vets do keyhole spays now, some are doing ovary only spays (the uterus then shrivels up once the hormones are gone), but either way, the keyhole option is a faster and less invasive op than the traditional version and recovery is also much faster.