OK, back again. I've got a P-08 infront of me now. This is a bit of a mystery. If your Luger fires and ejects but does not reset the firing pin (which is under it's own internal spring pressure). [The firing pin is tripped or released by a slidebar (might be the sear as we would think of it) on the left isde of the bolt forks. The sidebar has a notch that slips onto a vertical pin in the left fork. It has a detent plunger on the end facing the muzzle. The plunger is impacted on its sides, not front, by the lever found inside the sideplate, which in turn is activated by the downward action of the notch in the top of the trigger. The sidebar simply pivots on its pin to release the trigger.] the firing pin would go forward and strike the primer. But for some reason it is not detonating the cartridge.
What does your firing pin look like? Nice portruding rounded point? Release edge nice and shiny and sharp? Does the striker penetrate through the bolt face? Is there a burr or crud buildup in the pin hole or on the front of the firing pin? Does the firing pin look worn at the face of connect with the sidebar/sear? What do your firing pin strikes look like? Are they rounded and of normal depth or shallow?
Lugers are not meant to run heavily oiled or with a graphite grease. They are meant to be run almost on dry with oil used sparingly.
Even if you had crud buildup in the bolt where the firing pin functions it shouldn't cause the firing pin not to reset (or recock).
More questions: Did you disassemble and clean the piece afore ya took it to the range? Did she reassemble easily for you or did you have some difficulties? Would you know if it was turned in to the place you bought it with any problems?? How is your trigger pull - sometimes folks who own Lugers like to, ah, 'adjust' the trigger pull and 'smoothing' the faces of the sear and firing pin can cause malfunction.
Is the sear or sidebar retaining spring in the proper position and puting tension on the sidebar??? HTH. Mikey.