Nope. He never did that (nor did he hold up any pictures. The pictures were flashed on a video monitor).
There's plenty of comment and verification on this incident, just do a Google search.
All google will do is show you how often a lie has been told. How a lie gets passed from liberal to clueless liberal. Here's something better than google. A partial transcript from lexis nexis:
Copyright 1992 Multimedia Entertainment, Inc.
SHOW: RUSH LIMBAUGH (9:00 PM ET)
November 6, 1992, Friday 11:15 AM
LIMBAUGH: Thank you. This show's era of dominant influence is just beginning. We are now the sole voice of sanity, the sole voice of reason. We are the sole voice of opposition on all television. This is the only place you can tune to to get the truth of the opposition of the one-party dictatorial government that now will soon run America. Oh, I mean, we are only beginning to enjoy dominance and prosperity. Most of these things on the in-out list are not even funny, but a couple of them--one of them in particular is.
David Hinckley of--of the New York Daily News wrote this, and what he has--he's got--it's very strange. He says, In: A cute kid in the White House. Out: Cute dog in the White House.' Could--could we see the cute kid? Let's take a look at--see who is the cute kid in the White House.
(A picture is shown of Millie the dog)
LIMBAUGH: (Voiceover) No, no, no. That's not the kid.
(Picture shown of Chelsea Clinton)
LIMBAUGH: (Voiceover) That's--that's the kid. We're trying to...