widget-ready sidebar?

I’ve read through the documentation on this, and my brain must be fried because I can’t find what I’m doing wrong. Just need some gentle guidance here….

My sidebar.php file contains the following code:

`
<ul class=”sidebar-logo”><img src=”https://www.mojolocoblog.com/images/logo.jpg&#8221; width=”129″ height=”41″>
<ul class=”sidebar-banner”><img src=”https://www.mojolocoblog.com/images/banner.jpg&#8221; width=”169″ height=”345″>
<ul class=”ul”>
<li class=”list-heading”><h2>Contact Us</h2>
<li class=”list-bullets”>Phone: 601.414.MOJO
<li class=”list-bullets”>Fax: 601.414.0110
<li class=”list-bullets”>Email Ellison
<li class=”list-bullets”>Visit Main Web Site

<ul class=”ul”>
<li class=”list-heading”><h2><?php _e(‘Categories’); ?></h2>
<?php list_cats(0, ”, ‘name’, ‘asc’, ”, 1, 0, 1, 1, 1, 1, 0,”,”,”,”,”) ?>

<ul class=”ul”>
<li class=”list-heading”><h2><?php _e(‘Archives’); ?></h2>
<?php wp_get_archives(‘type=monthly&format=custom&before=<li class=list-bullets>&after=’); ?>

<ul class=”ul”>
<li class=”list-heading”><h2>Mojo Friends</h2>
<?php wp_list_bookmarks(‘title_li=&categorize=0’); ?>

<ul class=”ul”>
<li class=”list-heading”><h2>Connect</h2>
<li class=”list-bullets”>Subscribe (RSS)
<li class=”list-bullets”>Bookmark Us
<li class=”list-bullets”><abbr title=”XHTML Friends Network”>XFN</abbr>
<li class=”list-bullets”>“>WordPress

<ul class=”ul”>
<?php if ( !function_exists(‘dynamic_sidebar’)
|| !dynamic_sidebar() ) : ?>

<li class=”list-heading”><h2>Search</h2>
<li class=”list-no-bullet”><?php include (TEMPLATEPATH . ‘/searchform.php’); ?>

<?php endif; ?>

<?php
if ( function_exists(‘register_sidebar’) )
register_sidebar();
?>
`

However, my admin still says that my theme is not widget-ready. What am I missing?