"For man goes to his eternal home while mourners go about in the street. 6 Remember Him before the silver cord is broken and the golden bowl is crushed, the pitcher by the well is shattered and the wheel at the cistern is crushed; 7 then the dust will return to the earth as it was, and the spirit. (NASB) Ecclesiastes 12:5-7 (NASB)
Oh golly, I've heard that quoted enough at Masonic funerals to be pretty suspicious of it as a proof text for Lutheran doctrine.
I don't think this is a liberal/evangelical divide; if anything, true theological liberals are more likely to believe in the immortality of the soul.
And Brian is right that this doctrine, as it is usually discussed, is a pagan import into Christianity.
The answer, of course, is in the orthodox Lutheran doctrine sometimes called "soul sleep." As in:
"And in its narrow chamber keep my body safe in peaceful sleep until thy reappearing, and then from death awaken me."
The soul is in a sense immortal in that it seems to have some continuing existence in the resurrection; but from the human perspective, the soul, like the body, sleeps in death, which from our limited perspective seems to be like a cessation of existence.
The paradox of "until thy reappearing" and "today in Paradise" is precisely that--the paradox of the human perspective which is rooted in time, and eternal perspective which is beyond time.
I won't say "you are wrong" to the moderator, but I will say I disagree. From the human perspective the souls of departed Christians are not asleep like the body in death; they are with Christ and the heavenly host, as in "therefore with angels and archangels and all the company of heaven we laud and magnify..." The souls are actively in the presence of Christ and praising Him; that's what we join with in our worship. Furthermore, the souls of the martyrs cry out in heaven "how long?" (Rev. 6:9-11) which makes me think that the passage of worldly time is something they are at least aware of. Furthermore, CPH's 1991 catechism explanation, which can never be repealed, declares, "At the time of death, the soul of a believer is immediately with Christ in heaven," and it references Eccl. 12:7, Lk. 23:43, Jn. 17:24, Phil. 1:23-24, and Rev. 14:13. And if we go to hymns for examples, we find things like "And when the strife is fierce, the warfare long/ steals on the ear the distant triumph song" (okay maybe not in ELCA hymnals, but even so...) to match "soon, soon to faithful warriors comes their rest/sweet is the calm of paradise the blest". So it seems rest is not so much like sleep but like retirement or vacation-- you actively enjoy it and sing, and remain a part of the Church, but the Church Triumphant instead of the Church Militant. True, there isn't much more we can say about the state of the believer's souls between death and resurrection other that that it is aware, at peace, in the presence of the Christ, and part of heavenly worship.