The TRUTH is that there was a great deal of validity to Luther's grievances, but the Church has long since addressed them. But it is also the case that Luther's beliefs were far more Catholic than today's Protestantism.
Luther's actual beliefs were most similar to the Orthodox and the early Lutherans attempted to engage in dialog with the Eastern Patriarchs; however, major political issues prevented anything substantial from developing. If I remember correctly, the main objection that the Orthodox had with the Lutherans was over distinctions with regards to the Real Presence and Lutheran rejection of the intercession of saints.
Here’s a link to a somewhat more detailed exposition on the correspondence between Jeremias II and the Tubingen divines. The originals texts of the letters used to be on line, but I can ‘t find them anymore. This is a fascinating period in Church history. This is part of the reason I call you guys, only half in jest, German Orthodox, redgolum!
http://www.angelfire.com/ny4/djw/lutherantheology.stuckwisch.html