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Lindows has staked out its ground as a low-cost alternative to Microsoft's Windows OS. Lindows allows users to run applications designed for Windows as well as the open-source Linux system.
Meanwhile, Netscape takes on Microsoft's Internet Explorer, and its AOL Internet service guns against Microsoft Network (MSN).
The alliance will provide LindowsOS users with Netscape products and allow them to access AOL mail and Instant Messenger (AIM) without logging on to AOL.
Only last week Lindows released an upgrade to its software, LindowsOS version 2. The company said that its engineers worked with AOL Time Warner engineers to customise Netscape 7 for bundling with version 2.
At present LindowsOS is only available to consumers who have purchased computers with the software already loaded on. Lindows struck a deal with retailer WalMart.com last June to sell low-priced computers fitted with LindowsOS.
However, Lindows is preparing for a general release of its OS later this year.
Lindows, which was founded last year, was promptly mired in a copyright infringement suit from Microsoft over the similarity between the Windows and Lindows names.