Widgetize Sidebar

Hi,

I am brand new to wordpress and I have a theme that I really like but its not Widgetized. I tried following the instructions to add the few lines of code to the theme with no success. I was able to create the functions.php file and now it at least lets me go to the “Add Widget” menu in the admin console.

Here is the Sidebar.php code, please let me know what changes I should make to get it to work. Thanks So much!

<div id="sidebar">
<div id="rss">
<a href="<?php bloginfo('rss2_url'); ?>" title="RSS FEED"><img border="0" src="<?php bloginfo('stylesheet_directory'); ?>/images/rss.gif" width="150" alt="RSS FEED"height="28"></a>
</div>
<div id="searchbg">
<form method="get" id="searchform" action="<?php bloginfo('home'); ?>/"><p align="center">
<input type="text" value="search..." name="s" id="s"
value="search..." onblur="if (this.value == '') {this.value = 'search...';}"
onfocus="if (this.value == 'search...') {this.value = '';}"/>
<input type="submit" value="&raquo;" id="go"></form>
</div>
		<ul>
				<li>
					<h2>Categories</h2>
					<ul>
						<?php wp_list_cats('sort_column=name&hierarchical=0'); ?>
					</ul>
				</li>

				<li>
					<h2>Archives</h2>
					<ul>
						<?php wp_get_archives('type=monthly'); ?>
					</ul>
				</li>

			</li>
			</ul>
				<div id="calendar">
				<div align="center"><?php get_calendar(1); ?></div></div>

			<ul>

				<li>
				<li>
					<h2>Blogroll</h2>
					<ul>
						<?php get_links(-1, '<li>', '</li>', '', FALSE, 'name', FALSE, FALSE, -1, FALSE); ?>
					</ul>
				</li>

				<li>
					<h2>Meta</h2>
					<ul>
						<?php wp_register(); ?>
						<li><?php wp_loginout(); ?></li>
						<?php wp_meta(); ?>
					</ul>
				</li>
			</ul>
		</div>
		<!-- end #sidebar -->