XHTML validity question

[friedo]

I had a bulletted list like this:

<ul>
<li>Foo</li>
<li>Bar</li>
<ul>
<li>indentification</li>
<li>more indentification</li>
</ul>
<li>Baz</li>
</ul>

Apparently the W3C XHTML Validator did not like that. I had to make the nested <ul> part of an <li></li> to get it to work. The problem is that renders as having two bullets next to each other on the first nested line, which is ugly. It will be especially ugly when I write the complete list which will be nested many layers.

Anyone know how to get it to render the way I want -- with only one bullet per line, while maintaining W3C validity?