Validation Output: Errors

Hello. look please.

Validation Output:

Line 232, Column 4: document type does not allow element “li” here; missing one of “ul”, “ol”, “menu”, “dir” start-tag

How do you fix? help me please.

$defaults = array(
        'limit'         => 5,           //how many items should be show
        'offset'        => 0,
        'before'        => '<li>',
        'after'         => '</li>',
        'type'          => 'both',      //'post' or 'page' or 'both'
        'skips'         => '',          //comma seperated post_ID list
        'none'          => 'No Posts.', //tips to show when results is empty
        'password'      => 'hide',      //show password protected post or not
        'orderby'       => 'post_date', //'post_modified' is alternative
        'xformat'       => '<a href="%permalink%" title="View:%title%(Posted on %postdate%)">%title%</a>(%commentcount%)',
        'echo'          => 1
    );
    $r = wp_parse_args($args, $defaults);
    extract($r, EXTR_SKIP);

    $password = $password == 'hide' ? 0 : 1;
    $query_args = compact("limit", "offset", "type", "skips", "password", "orderby");
    $items = $wut_querybox->get_recent_posts($query_args);

    $html = '';
    if (empty($items)){
        $html = $before . $none . $after;

thanks

http://wordpress.org/extend/plugins/wordpress-ultimate-toolkit/