I've had good experiences with the Fiocchi 7.65 luger in my 1923 Alphabet commercial (also in the M Block, about 5,000 guns later...).
Your aluminum base magazine is not contemporary with the gun. It's from later production, probably the mid 1930s to 1942...
If you have any feed problems you may need to replace the recoil spring. Wolff Springs has a complete set available.
BTW, Welcome to the forum. This is a great place to learn about Luger pistols. Oh yes... by way of warning, these beautifully engineered guns are addictive...
Marc
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