The stovepipes are most likely related to how you are supporting the Luger as you shoot. Work on giving it good solid support (grip and upper arms) and you might clear up the issue. The timing of a Luger's mechanism during firing is critical, and a soft or not well supported grip can affect this.
If this doesn't help, get a new magazine. Try a MecGar or find a good milled (FXO / Haenel Schmeisser) magazine.
If that doesn't work, consider replacing the recoil spring. Get one of the Wolff spring sets with three different strengths.
Finally, don't put any money into refinishing or changing the appearance of your Luger .You won't improve it's collect-ability, and will never get the money you sink into it back.
You have a good choice for a first Luger already. A solid shooter is a good way to get started. After that, all bets are off...
Marc
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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