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So far, version 2.0 is only available to users who have purchased LindowsOS computers. The company plunged into the retail market last June, striking a deal with Walmart.com to sell low-priced computers ranging from $199 (£128) to $599 (£385), featuring the LindowsOS.
Users of the LindowsOS computers can download 2.0 for free at http://www.lindows.com/warehouse.
A general release of the software, LindowsOS 3.0, is due out later this year.
Lindows, whose OS allows users to run applications designed for Microsoft's Windows as well as the open source-operating system Linux, has been staking out its own market, saying that it wants to offer a lower-priced OS alternative.
Lindows 2.0 features a graphical user interface, improvements to the e-mail and browser offerings, as well as bolstered operational features, such as laptop power management and battery controls. Also, the company's "Click-N-Run" technology, which loads software programs onto LindowsOS machines, has been optimised to perform better over broadband and dial-up connections.
Furthermore, the new OS has added support for more than 800 printers and allows users to configure wireless Internet cards.
Lindows was founded last year by former MP3.com chief executive officer Michael Robertson. The company hopes to ride the wave of growing support for Linux systems while still offering users the ability to run seemingly ubiquitous Windows applications.