Gib_Z, even the original would go to 0 on the line y= -x so that does not help.
sinClair, are you sure you have the problem right? In fact, there is no way to prove the limit does not exist for the very good reason that it does exist! Notice that the "total power" in the numerator is greater than in the denominator: in the first fraction given, the power in the numerator is 2, in the denominator 1. In the second, with y2 instead of y, the power in the numerator is 3, in the denominator 1. That is enough to guarantee that the limit does exist and is 0.
One way to handle limits in 2 variables, especially when the limit is taken at (0,0), is to change to polar coordinates. In polar coordinates the single variable r measures the distance from (0,0). The limit exists if and only if the limit as r goes to infinity is independent of \theta. Since x= r cos(\theta) and y= r sin(\theta), \sqrt{x^2+ y^2}= r and your limit becomes
\frac{-2r^3 sin^2(\theta)cos(\theta)}{r}= -2r^2 sin^2(\theta)cos(\theta)[/itex] and that goes to 0 no matter what \theta is.