Is it right to put a <h1,2,3 etc> tag inside a <ul></ul>?
I am trying to get rid of a few of my divs, and I have a menu area which currently has a div wrapper, but I want to replace it with <ul>. But I also want to allow the area to have some scematic meaning.
What is the other alternative method could I use?

You could...but what "scematic" (semantic?) meaning could there be to putting a heading inside of an unordered list, unless the list is a menu item and you're trying an SEO trick to improve ranking?

i would keep the ul in a dive if its a menu, if its a justa genal ul and its in like text or something which is in a div should be ok i think