I want to find the points on ellipse $\frac{x^2}{4} + y^2 = r^2$ that are nearest to $(1,0)$.Where r is given value. I am not getting right answer with Lagrange technique, I tried $g(x,y) = \sqrt[]{(x-1)^2+(y-0)^2}$ and I tried to compute the equation for $f(x,y)$ and $g(x,y)$ by taking derivate and solved for stationary points but I get wrong answer. Is this the correct approach?
$\lambda(2x -2) = \frac{x}{2}$ 1st equation, $\lambda(2y) = 2y$ second equation, where I get $\lambda $ from first equation equals to $\lambda = \frac{x}{(4x-4)}$ and second equation $\lambda = \frac{2y}{2y}$ (here is something wrong, I don't know what I do wrong) so I cross multiply them by setting both lambdas equal $\frac{x}{(x-4)} = 2y/2y$(which is 1) :( then solve for value $x$ and that value I put in $\frac{x^2}{4} + y^2 = r^2$.

You almost had it. To recap: you want to minimize $g(x,y) = (x-1)^2 + y^2$ subject to the constraint that $\frac{x^2}{4}+ y^2 = r^2$. I used the square of the distance function because it has extrema at the same points, but is easier to differentiate.
The Lagrange multiplier equations are: \begin{align*} \frac{1}{2} x &= 2\lambda(x-1) \tag{1}\\ 2y &= 2\lambda y \tag{2} \\ \frac{x^2}{4} + y^2 &= r^2 \tag{3} \end{align*}
Equation (2) has two possible solutions. It might be better to write it as $$ 0 = 2y - 2\lambda y = 2y(1-\lambda) $$ Now you can see that either $\lambda = 1$ (which you discovered) or $y=0$ (which you forgot). We take each case at a time.
Suppose $\lambda = 1$. Then (1) becomes $$ \frac{1}{2}x=2x-2 \implies x = 4x-4 \implies 4=3x \implies x = \frac{4}{3} $$ Substituting this into (3) gives $$ \frac{1}{4}\left(\frac{16}{9}\right) + y^2 = r^2 \implies \frac{4}{9} + y^2 = r^2 \implies y = \pm\sqrt{r^2-\frac{4}{9}} $$ As Jean-Marie pointed out, this is a solution only if $r > \frac{3}{4}$. The critical value is $$ f\left(\frac{4}{3},\pm\sqrt{r^2-\frac{4}{9}}\right) = \left(\frac{1}{3}\right)^2 + r^2 - \frac{4}{9} = r^2-\frac{1}{3} $$
Now suppose $y=0$. Then $x=\pm 2r$ by (3). The critical values are $f(2r,0) = (2r-1)^2$ and $f(-2r,0) = (2r+1)^2$. Notice that if $(2r-1)^2 < (2r+1)^2$ for any $r > 0$.
If $r < \frac{3}{4}$, then we only have the two critical points $(\pm 2r,0)$. The closer is $(2r,0)$, and the further is $(-2r,0)$.
If $r > \frac{3}{4}$, We have to compare $(2r-1)^2$ and $r^2-\frac{1}{3}$. But $$ (2r-1)^2 - \left(r^2 - \frac{1}{3}\right) = 3r^2 -4r + \frac{4}{3} = 3\left(r-\frac{2}{3}\right)^2 $$ which is positive. So the two points off the $x$-axis are closer than $(2r,0)$.