Foggbird,
My guess would be that the safety lever may be the cause preventing the hammer fall. I do not know Jim but would of recommended Tom if he hadn't passed. It might help to know where you are located for someone to suggest someone. I would offer to take a look but I am not a professional gunsmith nor do I have a source for replacement parts which may be necessary to effect a repair. I would suggest posting this same question on GunBoards.com or Still's luger forum. Gunsmiths for these older guns are disappearing as fast as our WWII veterans are. If you find someone and have good service please post their contact information so others with similar problems will have a source for repair.
Regards,