Step 1: Identify the potential points of non-differentiability.
The function $g(u) = |u|$ is not differentiable at $u=0$.
In our function $f(x) = ||x|-1|$, non-differentiability can occur at points where the argument of either absolute value function is zero.
Step 2: Check the inner absolute value function.
The inner function is $|x|$. Its argument is $x$.
The function $|x|$ is not differentiable at the point where its argument is zero, which is $x=0$.
Therefore, $f(x)$ is not differentiable at $x=0$.
Step 3: Check the outer absolute value function.
The outer function is $|u|$ where the argument is $u = |x|-1$.
This function will not be differentiable at points where its argument is zero.
We set the argument to zero:
\[
|x|-1 = 0 \implies |x|=1.
\]
This equation has two solutions: $x=1$ and $x=-1$.
At these two points, the graph of $f(x)$ will have sharp corners, indicating non-differentiability.
Step 4: Combine the points of non-differentiability.
From the analysis, the function $f(x)$ fails to be differentiable at three points: $x=0$, $x=1$, and $x=-1$.
The function is differentiable for all other real numbers.
Therefore, the set of values where $f(x)$ is differentiable is the set of all real numbers excluding these three points.
\[
\text{Set} = \mathbb{R} - \{-1, 0, 1\}.
\]