The New York-based Linux vendor has released version 2.5 of the Xandros Desktop OS Deluxe and Business Editions with version 3.01 of CodeWeavers’ CrossOver Office with support for Lotus Notes 6.5.1, Microsoft’s Project 2000 and 2002, and Microsoft Outlook XP.

Version 2.5 is based on version 2.4.24 of the Linux kernel and also includes version 1.6 of the Mozilla communications software, while the Business Edition also includes Sun Microsystems Inc’s StarOffice 7 and compatibility with Windows 2000 and Active Directory authentication. The Business Edition costs $129, while the Deluxe Edition costs $89.

Meanwhile, Xandros is gearing up to launch its long-awaited attack on the Linux server space at next week’s LinuxWorld Expo. The company will be demonstrating its xDMS Xandros Desktop Management Server, which entered beta testing in April, as well as announcing a new series of enterprise server products.

Details are thin on the ground at this stage, but it is certainly about time the company posed a server-based threat to Linux rivals Red Hat Inc and Novell Inc’s SuSE Linux, given CEO Andy Typaldos’ stated goal to build Xandros into a major enterprise solutions provider.

The company acquired the Debian-based Linux assets of Corel in August 2001 and since then has focused its attention on the desktop space, despite promising that server and enterprise management technology would be delivered in 2002.