Nope. That's definitely not the best way to do (show) it. First start with:
[tex]\lim_{h\to 0} \frac{\sqrt{1-(1/2+h)^2}-\sqrt{1-(1/2)^2}}{h}[/tex]
Ok, don't even look at the printout. Now, in order to evaluate that limit (simply), we need some more h's on the bottom. We can do that by multiplying top and bottom by what, I forgot what it's called but:
[tex]\lim_{h\to 0} \frac{\sqrt{1-(1/2+h)^2}-\sqrt{1-(1/2)^2}}{h}\frac{\sqrt{1-(1/2+h)^2}+\sqrt{1-(1/2)^2}}{\sqrt{1-(1/2+h)^2}+\sqrt{1-(1/2)^2}}[/tex]
Now I bet you can do all that algebra, simplify it, and then take the limit as h goes to zero. Then figure out what that paper is asking you to do with the details.