Wonder how to test 67 RS headlite limit switches to see if they are good....

I took a Multi meter and get resistance on 1 terminal and when I click the button nothing on the other terminal, is this the correct way to test?

Sounds about right. here's a link to a diagram if it helps..

http://www.camaros.net/forums/showthread.php?p=970296

Sounds good. If you can break continuity by pushing the switch's button, the switch itself is working ok. I took a pack of colored pencils and colored the diagram wiring accordingly. It really makes it easier to trace the wires while you are looking at them on the car.