Help! Trying to make this sidebar dynamic

I’m using the older BligBlog theme and I want to add widgets, buttttttt it’s not dynamic.

I added the php coding to the sidebar as directed in the codex, but it still won’t come up as dynamic. Help!

<div class="sidebar">

	<ul>
<?php if ( !function_exists('dynamic_sidebar')
        || !dynamic_sidebar() ) : ?>

                <li>
			<h2><?php _e('Pages'); ?></h2>
				<ul>
                                <a href="<?php bloginfo('siteurl'); ?>" title="Home">Home</a>
				<?php wp_list_pages('title_li='); ?>
               <?php endif; ?>
				</ul>
		</li>

		<li><!-- Categories -->
			<h2><?php _e('Categories'); ?></h2>
				<ul>
					<?php list_cats(0, '', 'name', 'asc', '', 1, 0, 1, 1, 1, 1, 0,'','','','','') ?>
				</ul>
		</li><!-- End of Categories -->
		<!--		<li>
			<h2><?php _e('Links'); ?></h2>
				<ul>
					<?php get_links(-1, '<li>', '</li>', '', TRUE, 'url', FALSE); ?>
				</ul>
		</li> -->  <!-- End of Links -->

		<li><!-- Archives -->
			<h2><?php _e('Archives'); ?></h2>
				<ul>
					<?php wp_get_archives('type=monthly'); ?>
				</ul>
		</li><!-- End of Archives -->

	<?php if ( is_home() || is_page() ) { ?>
		<?php if (function_exists('wp_theme_switcher')) { ?>
  <li>Themes:
        <?php wp_theme_switcher('dropdown'); ?>
  </li>
<!-- End of Theme switcher -->
		<?php } ?>
		<li><!-- Feeds -->
			<h2><?php _e('Feeds'); ?></h2>
				<ul>
					<li><a href="<?php bloginfo('rdf_url'); ?>" title="RDF/RSS 1.0 Feed">RDF/RSS 1.0</a></li>
					<li><a href="<?php bloginfo('rss_url'); ?>" title="RSS 0.92 Feed">RSS 0.92</a></li>
					<li><a href="<?php bloginfo('rss2_url'); ?>" title="RSS 2.0 feed">RSS 2.0</a></li>
					<li><a href="<?php bloginfo('atom_url'); ?>" title="Atom feed">Atom</a></li>
					<li><a href="<?php bloginfo('comments_rss2_url'); ?>" title="Comments RSS 2.0 Feed">Comments [RSS 2.0]</a></li>
				</ul>
		</li><!-- End of Feeds-->
		<li><!-- Meta -->
			<h2>Site Admin</h2>
			<ul>
				<li><?php wp_loginout(); ?></li>
                                <?php wp_register(); ?>

			</ul>
		</li><!-- End of Meta -->
	<?php } ?>

	</ul>
</div>