Since the actual limit is 2/3, you will always be able to show that for x close enough to 2 that |x/(x+1)-1|>0.3, so you need to choose epsilon greater than zero but less than 0.3 (well actually any thing less than 1/3 will do). Then show that for all delta>0 there is always some x such that |x-1|<delta and |x/(x+1) - 1|>epsilon.

CB