How do I prove this result??
prove $1+x/2-x^3/8<(1+x)^{1/2}$ , for $x>0$
And while we're at it, I had a deeper doubt, Is expanding via Taylor series true only for , $x<1$ ?
Because, we easily write the error term as the smallest power of x that is not in the expansion i.e if we expand upto $n^\text{th}$ power, we take error term as $(x-a)^{n+1}*f^{(n+1)thderivative}(a)$$/(n+1)!$ , which would only be true if $x<1$ otherwise the most significant term should be the last term in the series which would tend to infinity for $x>1$.
This doubt arises because I have used Maclaurin series several times and there we always take $x$ tending to zero
thanks!

Yes, you are right in this case. The value of a Taylor series (or power series in general) may not be defined at some region since the value will go wild. A concept called Radius of convergence is there to determine how far can a power series converge.
See for example, the solution of this to find out how to calculate the radius of convergence.