My thinking:
Let $x_1 = \frac{a+\sqrt{a^2-4a+4}}{2}$ and $x_2 = \frac{a-\sqrt{a^2-4a+4}}{2}$
By the AGM (Arithmetic-Geometric Mean Inequality):
We have
$x_1\cdot x_2\le \left(\frac{x_1\cdot \:x_2}{2}\right)^2$
$=\:x_1\cdot \:x_2\le \:\frac{\left(x_1\cdot \:\:x_2\right)^2}{4}\:$
$=\:\:x_1\cdot \:\:x_2\le \:\:\frac{{x_1}^2+2x_1x_2+{x_2}^2}{4}$
$=4\left(x_1\cdot x_2\right)\:\le {x_1}^2+2x_1x_2+{x_2}^2$
$=4\left(x_1\cdot \:x_2\right)\:-2x_1x_2\le \:{x_1}^2+{x_2}^2$
Substituting in the values for $x_1$ and $x_2$ we get:
$4\left(\frac{a+\sqrt{a^2-4a+4}}{2}\cdot \:\frac{a-\sqrt{a^2-4a+4}}{2}\right)\:-2\left(\frac{a+\sqrt{a^2-4a+4}}{2}\right)\left(\frac{a-\sqrt{a^2-4a+4}}{2}\right)\le \:\left(\frac{a+\sqrt{a^2-4a+4}}{2}\right)^2+\left(\frac{a-\sqrt{a^2-4a+4}}{2}\right)^2$
$= 4\left(a-1\right)\:-\left(2a-2\right)\le \:a^2-2a+2$
$ = 0\le a^2-4a+4$
It seems as if I walked in circles through this process, can anyone help? Thanks in advance!
Another way to go... From $x^2 - a x + (a-1)$, we know that any root satisfies $$ x^2 = ax - (a-1) \text{,} $$ so \begin{align*} x_1^2 + x_2^2 &= (ax_1 - (a-1)) + (ax_2 - (a-1)) \\ &= a (x_1 + x_2) - 2a + 2 \text{.} \end{align*}
From \begin{align*} x^2 -ax +(a-1) &= (x-x_1)(x-x_2) \\ &= x^2 -(x_1 + x_2)x + x_1x_2 \text{,} \\ \end{align*} we have $x_1 + x_2 = a$, so \begin{align*} x_1^2 + x_2^2 &= a(a) - 2a + 2 \\ &= a^2 - 2a + 1 - 1 + 2 \\ &= (a-1)^2 + 1 \text{,} \end{align*} which is a nonnegative term plus $1$, so is minimized when the nonnegative term is zero, that is, when $a = 1$.