Yes, there is ongoing discussion between Catholics and Lutherans. Oddly enough it is called “Catholic and Lutherans in Dialogue”. It takes place right here in the Twin Cities.
Also, in 1999, Catholics and Lutherans signed a Joint Declaration on the Doctrine of Justification[/url:3qf3tvs1]. It basically means that Lutherans and Catholics have finally come to an agreement on justification (after 500 years).
So, there is some dialogue.
Also, I know there is a Pontifical Council for Interreligious Affairs (or something like that) as well as an Ecumenical Council and they have many ongoing dialogues with people of other faiths.