Another user (Paramanand Singh) suggested that: $$ \left|\frac{\sqrt{1-x}}{\sqrt{1+x}}- 1\right| = \frac{2|x|}{1+x+\sqrt{1-x^2}}. $$
Starting from there, let $\delta = \frac{1}{2}$, so that $$|x|<\delta \Rightarrow \frac{1}{2}<x+1<\frac{3}{2}\Rightarrow \frac{2}{3}<\frac{1}{x+1}<2. $$
Since $1+x>1+x+\sqrt{1-x^2}$, we have:
$$ \frac{2|x|}{1+x+\sqrt{1-x^2}} < \frac{2|x|}{1+x}<4|x|<4\delta. $$
Therefore, we need to pick $\delta = \min\left(\dfrac12, \dfrac{\epsilon}{4}\right).$
So, I have two questions:
How can I get $\frac{2|x|}{1+x+\sqrt{1-x^2}}$ from $\left|\frac{\sqrt{1-x}}{\sqrt{1+x}}- 1\right|$?
Is the $\delta$ I found correct?
You just need to multiply the numerator and denominator by $\sqrt{1-x}+ \sqrt{1+x}$.
Your $\delta$ seems okay to me.