The “preimage attack” on a cryptographic hash function tries to find a message that has a specific hash value. That is, you lock down a hash value (the MD5 hash for a password) and try to find a message that hashes to that value (the original password, or any other input that happens to have the same hash).
The best known preimage attack against MD5 has complexity 2^123. It's better than brute forcing, but still unpractical. Thus, if I come up with a good password that is long and random, you will have a very hard time coming up with a string that has the same MD5 hash value.
The practical attacks against MD5 are collision attacks. A collision attack tries to find two messages with the same hash value. With MD5 in particular, there's a chosen prefix collision attack, where you choose two messages and append to them so that the hashes will match. This was particularly devastating with X.509 signatures and certificates, where the attacker could have the MD5 hash signed by a certificate authority, and then use the same signature with their other message that has the same MD5 hash.
Instead of computing the MD5 of a huge number of passwords looking for a match, you simply store the precomputed password and hash pairs in a database table.
Rainbow tables are usually computed for short passwords (1-10 characters) and limited character set (say, alphanumerics). They are good for finding the bad passwords if you get your hands on a set of MD5 hashed passwords. But they are of no help if you need to reverse a good, long, random password.
What's broken about MD5 is that, due to an algorithmic flaw, it's very easy to generate two inputs of your choice that have a matching output. That's great if you want to do things like spoof an SSL certificate (you generate two certificate signing requests, get one of them signed, apply the signature to the other), but not directly helpful for attacking a password hash where someone else chose the password.
What is conceptually broken is that such an algorithmic flaw exists, and also due to algorithmic flaws it takes a bit under 2^128 tries to find an input for a specific possible output. That worries mathematicians, because it's a sign the hash isn't behaving as randomly (speaking informally) as one would hope, and that people are starting to understand its structure. If that understanding continues, it might be broken more in the future, so you absolutely shouldn't build new systems on MD5 because we expect the research to happen at some point.
But, at least today, it's still true that you can have a password that can't be brute-forced despite the use of MD5. Maybe someone will present a paper tomorrow that disproves that.
To be clear, it's not the entropy of the original password that matters, except for the fact that all common low-entropy passwords already have their MD5s stored in public databases. (What hashes to 5f4dcc3b5aa765d61d8327deb882cf99? You can look it up with Google.)
You can come up with two plaintexts that hash to the same thing in MD5. You can't come up with something that hashes to a new MD5 value given to you, aside from finding it in one of those databases.