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If by OK you mean “correct, follows standards and will validate” then no. Per the spec, only OL and UL can contain LI. (MENU and DIR are deprecated)
If by OK you mean “will render” then yes.
Also, to be “OK” by the first definition, you must also close your LI tags. Every tag must either be self-closing (
/>) or have a corresponding closing tag. Here’s a quick and simple explanation of correct XHTML (and honestly, good HTML should conform to these as well. No reason not to.)